Disney misses expectations with lackluster quarter
The company couldn't give analysts what they wanted to see on profit or revenue.
The quarter was also dragged down because it had one less week than the year-ago period, and because of an accounting shift in the way revenue is recognized.
Disney reported an $835 million profit, or 43 cents a share, for the quarter ended Oct. 2. That's down from $895 million, or 47 cents a share, in the year-ago period.
After removing some one-time charges, profit came to 45 cents a share. That's still a penny less than what analysts were expecting.
The company blamed the drop on a shift in some revenue from the ESPN cable network to the third quarter. That shift contributed to a 9-cent hit to EPS, the company said. Post continues after video:
Disney reported revenue of $9.74 billion, a drop from $9.87 billion in the year-ago period. Analysts were expecting $9.95 billion.
The quarter gave Disney problems to the very end. The company was supposed to release its earnings after the bell, but the release inexplicably appeared on Business Wire around 3:30 p.m. EST. Oops.
The news sent Disney shares down nearly 3% to close at $35.93. The stock was essentially flat in after-hours trading.
Revenue fell 7% for Disney's cable and broadcast operations, while the parks and resorts segments saw a 1% drop. Disney said that costs were higher at its resorts, while hotel occupancy was lower.
The studio entertainment division saw a 6% revenue increase, largely due to the international success of "Toy Story 3." Consumer products sales rose 13% and interactive media sales rose 20%. But both of those categories are quite small compared to Disney's broadcast and theme park businesses.
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] There wasn't a lot of excitement in the stock market today and there is nothing wrong with that. After rallying in broad-based fashion on Friday, the major indices stood their ground (for the most part) amid a lack of conviction from buyers and sellers alike.
Today wasn't a case so much of the stock market going up as it was a case of some influential stocks going up to keep the major indices on a winning path. In fact, decliners were just about even with ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
LATEST MARKET DISPATCHES
- No more Dispatches; here's where to find market news
The Market Dispatches column has been discontinued. Here's where to find the latest stock and business news on MSN Money, and the latest from market writer Charley Blaine.
- Dow falls 59 as late-day gloom kills a rally
- Stocks held back by fiscal-cliff worries
- Stocks suffer worst weekly loss in 5 months
- Dow off 121 as post-election swoon continues
- Dow slumps 313 after Obama's re-election
- Dow jumps 133 as Americans head to the polls
The photo-sharing site only has 10 employees, and it may be up for grabs.